1. Copyright Marts & Lundy The Annual Fund Our gateway to all giving and the foundation of the fund raising program Kathleen Hanson Senior Consultant and Principal Leader – Schools Practice Group Editor, The NAIS Handbook on Marketing Independent Schools NESA Leadership Conference – October 2011

2. 2 Our focus The Annual Fund Purpose and Value Structure & Planning Creativity in Approach

3. 3 Annual Fund’s Function  Provide operating income  Acquire new donors  Re-acquire lapsed donors  Upgrade current donors  Identify and involve future volunteers  Identify and engage major donor prospects  Provide a training ground for “givers” and “getters”

4. 4 Most Importantly Provides the school with a venue for illustrating its worthiness on an annual basis.

5. 5 Today’s Annual Fund Purist view: all dollars must go to the operating budget Reality view: today’s donor likes to see the impact of his or her gift-some gifts are designated

6. 6 Benefits of the Annual Fund  Revenue is often significant  Opportunity to educate  Promotes the “case for support” and the culture of philanthropy  Strengthens relationships  Donors often move from annual support to capital support

7. 7 Data Needed for Planning Three years of annual fund giving data Donor acquisition; retention and attrition Results of screening Discussions with Admission regarding new families entering the school Leadership donor pipeline Reunion class prospects Pledge fulfillment over past five years

8. 8 Material Needed  Volunteer role description  Training materials  Annual Fund Facts  Matching Gift Opportunities  Payment options  Frequently Asked questions  School Statistics

9. 9 Structure Depends upon your constituency……. You can organize by gift levels:  Leadership Gifts  Non-Leadership Gifts  Reunion Giving

10. 10 Structure You can organize by constituency:  Alumni  Reunion Classes  Current Parents – by division or grade  Parents of Alumni  Grandparents  Friends

11. 11 Giving Levels a)$1,000 and up a)Some schools have levels up to $25,000 b)Special levels for young alumni c)Special levels for continuous donors

12. 12 The volunteer leadership structure The volunteer leadership of the annual fund is a vitally important component in achieving success.  They need to be part of the planning  They need to recruit other volunteers  They need to assist with stewardship

13. 13 Leadership Gift Committee  For large institutions, consider a Leadership Gift Committee  Composed of trustees, alumni, and parent leaders to help identify, qualify, and solicit $1,000 prospects and above  Set a goal of soliciting as many leadership donors as possible face-to- face

14. 14 The Annual Fund Business Plan  Begins with the case for support  Moves to setting strategy  Becomes a blueprint with a timeline  Is evaluated after each annual fund cycle

15. 15 Gift Scale or not?  Some schools develop a scale of gifts to inform their planning  Other schools develop specific strategies for leadership donors to move them to the next level  Leadership giving, for the most part, will drive the success of the annual fund

16. 16 Making the Case o The case for supporting the annual fund is vitally important o One page, if possible o Carried in all materials o Understood by the volunteers o Authentic to the prospective donors

17. 17 Where should time and $$ go? The plan for the annual fund will direct staff time and energy. There is good research which suggests there is no difference in outcome when an annual fund appeal is in a letter format or a four- color brochure. A personal approach to leadership giving does suggest a more positive outcome

18. 18 Acknowledgement Gifts must be acknowledged immediately  Set up a process for gift crediting and acknowledgement  When does the Head of School write a personal note?  Who signs which letters? Donors need to feel as though their gift matters

19. 19 Tracking Progress  Track against prior year or prior two years  Track donors who typically give at a certain time of year  Track % of giving at each level  Track average size of gift against prior year  Track results from every approach  Don’t be afraid to “test” an approach

20. 20 Reporting Process  What will your reports of progress look like?  To whom do they go and how frequently?  Manage expectations up front  What do you wish the report to accomplish?

21. 21 Creativity  Models for Faculty and Staff Solicitations  Can create real energy internally  Models for “get it done in 31” for parent participation  Focused approach on parents in a single month, with high visibility for the fund  Models for Grandparent solicitations

22. 22 Creativity  Letters to donors on impact of their gift  Special letters to first-time donors  Special letters to donors who have made five years of consecutive gifts; 10 years  Video clips with students expressing thanks

23. 23 Creativity  Social Media  On Line Giving  Challenges

24. 24